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From the Dallas Morning News, a story about how "the owners of nearby retail properties and buyers of land near future H-E-B stores are also excited to see the popular grocer expanding to Dallas-Fort Worth."  These companies believe in the aphorism that a rising tide will lift all boats, generating new occupants for shopping centers and new customers even for competing retailers.

“It’s all about sales,” Herb Weitzman, founder of Dallas-based retail real estate firm Weitzman, tells the News. “Nobody in the state comes close to doing the volume H-E-B does.

“These stores reach volumes that are so much greater than what the other grocery stores are doing.  They absolutely have an effect on the area and pull in new customers.”

KC's View:

I remember decades ago, Costco announced plans to open a new store in Danbury, Connecticut, not far from a then-new Stew Leonard's.  Leadership at Stew's was very clear - Costco would bring new customers into the area, and some of them would come to Stew Leonard.s which had a fundamentally different value proposition than the membership club.

That's an important lesson for the Dallas-Fort Worth retailers.  It is hard to do, but if you are going to be effective with all these new customers, you have to have a differentiated offering.  You can't just hope to survive from crumbs off H-E-B's table, because that's neither nourishing nor sustaining over the long term.